SIM Only Network Provider Enters Handset Market

Posted by John East on the 11th December 2013 | Topics: News

GiffGaff has announced that it will no longer be solely about SIM only deals, this month, it will also be selling smartphones as part of fixed term contracts, according to TechRadar.

Giff GaffThis is an interesting move and one which suggests that the ambitions of the network are growing and it plans to build on its strong SIM only roots.

The company uses O2's network infrastructure as, like other MVNOs, it does not own any hardware itself, instead piggybacking on one of the major provider's platforms to offer service across the UK.

It even managed to undercut O2's pricing on a number of SIM only deals, so it will be interesting to see how competitive its handset bundles are when compared with its larger rivals.

GiffGaff is setting out to make its mobile deals distinct by giving buyers the option to choose a device which is unlocked and SIM free, meaning it will be compatible with any network and not just its own. You can get a fixed term 24 month contract, with a phone that is financed over the course of the deal, which is a more common approach.

Twenty handsets will be offered by GiffGaff from the offset, with more expected to be added further down the line.

It is still arguably better to choose a SIM only offer and then select a smartphone of your choice rather than committing to a lengthy deal with a free device, if you can afford the upfront costs. Contracts which are stretched out over two years will end up costing you more than if you buy a phone and SIM card separately, which is worth bearing in mind.

SIM only deals from GiffGaff are still available for those customers who want to stick with the standard route.